If a bank is about to release POD funds to me, what documents or records should I keep to protect myself against later challenges? - Pennsylvania
The Short Answer
In Pennsylvania, POD (payable-on-death) funds generally pass by the account contract to the named beneficiary and not through the will or probate estate. To protect yourself if someone later challenges the payout, you should keep clear records showing (1) you were the named POD beneficiary at death, (2) the bank paid you according to the account’s terms, and (3) what happened to the money after you received it.
What Pennsylvania Law Says
POD and other multiple-party account transfers are typically treated as non-testamentary transfers—meaning they are not controlled by the will and are not handled as part of the probate process in the ordinary way. In other words, if the beneficiary designation is valid, the bank is usually supposed to pay the named beneficiary directly, even if the will says something different.
The Statute
The primary law governing this issue is 20 Pa.C.S. § 6304.
This statute establishes that, at death, funds in a trust/POD-type account belong to the surviving named beneficiary(ies) unless there is clear and convincing evidence of a contrary intent, and it also provides that beneficiary/survivorship rights generally cannot be changed by will.
Relatedly, Pennsylvania law also states that these account transfers are not treated as testamentary transfers subject to will rules. See 20 Pa.C.S. § 6306.
Why You Should Speak with an Attorney
Even when the bank releases POD funds, disputes can still arise—especially in families where the will, beneficiary designations, and “who was supposed to get what” do not line up. Legal outcomes often depend on:
- Strict Deadlines: Challenges can come quickly after death or after distributions begin, and delay can affect your ability to defend the transfer or preserve evidence (including bank records that may not be kept forever).
- Burden of Proof: A challenger may try to argue “clear and convincing evidence” of a different intent, or raise claims like undue influence, lack of capacity, or fraud tied to how the beneficiary designation was created or changed.
- Exceptions and Overlap with Other Claims: Even if the POD transfer is valid, disputes can involve creditor issues, alleged misuse of a power of attorney, or arguments that funds should be traced back to the decedent’s benefit—issues that can expose a beneficiary to demands, subpoenas, or litigation.
Records to keep (high-level): Keep (1) the bank’s written confirmation of the POD designation and the account’s “form” at death, (2) the bank’s payout letter/check/wire confirmation and final statement showing the date-of-death balance and distribution, (3) a certified death certificate copy used for the claim, (4) any beneficiary claim forms you signed, and (5) a clean paper trail after receipt (deposit record into an account in your name, and documentation of any transfers, payments, or splits to other beneficiaries).
If your facts include a will with a trust for children and separate POD designations to you and a relative, an attorney can help you assess where challenges are most likely (for example, whether someone will argue the POD designation conflicts with the estate plan, or whether there are allegations about how the designation was set up).
For more background, you may also find helpful: How a named beneficiary claims a POD bank account in Pennsylvania and whether POD funds can be reached by estate creditors in Pennsylvania.
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.